Opening the Market: An Update on Direct Investment into Listed Shares in Saudi Arabia

After years of speculation that the Saudi Stock Exchange (Saudi Tadawul) may be opening up for direct investment by foreigners into listed entities in Saudi Arabia, the Capital Market Authority of Saudi Arabia (CMA) published on 21 August 2014 its proposed draft Rules for Qualified Foreign Financial Institutions’ Investment in Listed Shares (Draft Rules) to initiate this process. The publication of the Draft Rules was followed by a public consultation period. The CMA’s stated intention at the time was to finalise the consultation process – including internally with the government and Saudi Tadawul by the end of 2014 – in order for Saudi Tadawul to be opened up for investment in accordance with the final rules during the first half of 2015.